What is the condition under which Itan may modify the terms of the brand protection covenants?

According to Itan's 2025 Franchise Disclosure Document, Itan may unilaterally modify the terms of the brand protection covenants in Section 3 of the Franchise Agreement. This modification can occur at any time, provided that Itan gives the franchisee written notice.

The modifications Itan can make include limiting the scope of prohibited activities, narrowing the definition of a competing business, shortening the duration of the restricted period, reducing the geographic scope of the restricted territory, and/or reducing the scope of any other covenant imposed upon the franchisee under Section 3 of the agreement. The purpose of these modifications is to ensure that the covenants are enforceable under applicable law.

This clause gives Itan significant flexibility to adjust the brand protection covenants as needed. For a prospective franchisee, this means that the terms of the non-compete and confidentiality agreements could change during the franchise term. It is important to understand the potential implications of these changes and how they might affect the franchisee's future business activities should they leave the Itan system. Franchisees should seek clarification on what circumstances might trigger such modifications and how Itan determines the specific changes to be made.